But there is a problem with other Shaders.
Every pass makes one extra render per frame.
When you got a 3-pass terrain, the terrain gets rendered 3 times with the current camera transparency. The result is an 1/3 blur. To compensate you would have to set the alpha value to a lower level waht makes the models very transparent.
So it would be great when you could give us a look at it. At the moment I only can solve the problem by deactivating the material effect while the camera is transparent what really doesn't look nice...